Glossary of Auto Insurance


Do you want the right auto insurance coverage? This is possible by understanding the terms and conditions of auto insurance. It is important to understand the terms of your auto insurance. This is an important factor in choosing the right auto insurance policy.

You can better prepare for the boom industry by taking a new look at some of its interesting terms. These are some:


Temporary agreement that states that the auto insurance policy has been in effect for a while but is not required to be in force. This agreement is based upon the contract between the policyholders and the insurance company, which may not have been in effect.

The binder protects the policyholder when a policy cannot immediately be endorsed.

Bodily Injury

Unexpected damage or injury to the vehicle’s body, passengers, pedestrians, and/or driver of the car, resulting from an accident or storm or wind or other casualty.

Sometimes, it could be because of negligence on the driver’s part. Car drivers should exercise caution when driving on the road.

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This could also be due to negligence by other drivers. Drivers should expect to be covered for bodily injury liability.

Bodily Injury Liability Insurance

This policy also covers auto insurance policy coverage in the event that a car accident results in bodily injury to the driver or others, e.g. passengers and/or pedestrians.

Most cases cover the loss of income due to an accident, as well as the medical expenses for victims who have the coverage.

The benefits of bodily injury coverage are many. The main reason is that medical expenses are reduced.

Normally, any medical expenses resulting from an accident that causes bodily injury to someone are the responsibility of the victim or their guardian.

You can get coverage for bodily injuries based on the severity and cost of your injuries.

Other than the driver, other people can sustain injuries. The pedestrian could be sued against the driver.

If the driver is found guilty of the injuries suffered by victims, then the coverage could be used to pay for legal defense costs.

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Blue Book

It refers to the written or printed book of auto insurance. It is used primarily to determine the market value of vehicles and trucks with auto insurance coverage.

The book determines the value of an automobile or car. It is equal to the amount computed and paid out to the policyholder in case of damage to the vehicle or truck.

The blue book is often used to keep track of the value and record of an insured vehicle or truck. It is kept safe for future reference in case of car damage or an accident.


A broker is a consultant or marketing professional who represents one or more insurance companies.

They follow the appropriate procedures and steps to ensure that the policyholder or customer receives the best auto insurance coverage or value.

They work closely with agents and companies to provide the best value for all policyholders.


This is an insurance specialist licensed to act as both a representative agent or broker for one or several insurance companies.

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They ensure customers and policyholders receive the best insurance policy value. They are the intermediary between you, the insurance company and them.

They might also need to report your complaints or feedback to insurance companies to meet your insurance needs.

They may also have to pass or give some updates to the policyholder while the policy is in effect.

They must be reasonable and interested in the affairs of the insured. They should be well-versed in the insurance industry they represent.

Broker Fee Agreement

It refers to the contract between the insured/policyholder, and the licensed broker, during the period of insurance coverage.

This agreement might include the actual costs of the broker’s services for the insurance coverage of policyholders.

The agreement of the insurance policy is the foundation for all actions and decisions. This agreement helps to avoid unnecessary disagreements and failures during the insurance policy.